Oil Hits 7-Month Highs As Iran Talks Stall, Regional Tensions Rise

Global oil prices surged to seven-month highs in February 2026 amid stalled negotiations between Western powers and Iran over nuclear restrictions and sanctions relief. Escalating tensions in the Middle East, including cross-border clashes between Iran and Pakistan, heightened supply disruption fears, driving benchmark crude futures above $95 per barrel. Analysts warned prolonged diplomatic deadlock could trigger further price spikes, with traders pricing in geopolitical risk premiums not seen since late 2023. Energy stocks rallied as investors bet on sustained demand, with major oil producers reporting record quarterly profits amid reduced OPEC+ output cuts. Market volatility persisted as Afghanistan’s instability and Red Sea shipping disruptions compounded supply chain pressures, overshadowing weaker-than-expected Chinese demand data.